Business

Sri Lanka VFS Global visa deal despite IMF anti-corruption requirements: opposition

Monday May 13, 2024 5:44 am

ECONOMYNEXT – Sri Lanka’s controversial visa deal with IVS-GBS and VFS Global is coming despite the country being required to reduce corruption stemming from an International Monetary Fund governance assessment, the island’s main opposition has said.

The main opposition has also slammed the unsolicited deal with VFS Global, a private contractor, as being bigger than a central bank linked bondscam in 2015.

“This is three or four times bigger than the bondscam,” opposition legislator Rauff Hakeem told parliament.

“I am bringing to the attention of this house this massive fraud (visharler wanchawak).

IMF Governance Benchmarks

The deal came despite procurement requirements and anti-corruption roadmap required in an International Monetary Fund deal, following a ‘governance diagnostic assessment’.

“Having pledged all those new measures, and agreed to the IMF conditions, what does the government do?,” Hakeem asked in parliament.

VFS Global and two other firms named in a consortium, IVS-GBS were allowed to collect 18.5 dollars per tourist from a visa. Previously a double entry visa was given at 50 dollars.

VFS Global was selling a double entry visa at 100.77 dollars with actual visa being hiked to 75 dollars and two fees of 18.50 and 7.27 being charged from tourists.

It has now turned out that the visa validity period of the e-visa has been suddenly halved to three months from six, and money has been taken from unfortunate tourists without informing them of the change.

Sri Lanka Parliament’s Committee on Public Finance has also questioned the charges of VFS Global, which now has a monopoly.

The committee has called senior officials to examine the issue.

Examination of the #SriLanka visa outsourcing contract began at #COPF in @ParliamentLK today. We will meet again on the 14th to continue the discussion. As Chair of the committee this is all we wish to state to the media given the ongoing n sensitive nature of the matter.

— Harsha de Silva (@HarshadeSilvaMP) May 9, 2024

Massive Costs

Hakeem said if 2.5 million tourists came in 2024 VFS Global would earn around 18.7 billion rupees in the year. In 2024, however the target is around 2.3 million.

He did not say what exchange rate he was using to make the calculation.

In 2024 the entire Department of Immigration’s wage bill in the budget was only 992 million rupees, Hakeem said.

“The total recurrent expenditure of the Department of Immigration and Emigration is 2.57 billion rupees,” he said.

“The amount that goes to the company is 7.2 times bigger.

The total recurrent expenditure of the Department of Immigration and ICT Agency put together was 5.2 billion rupees.

“Whereas we are paying 6.2 times more to some outside company,” Hakeem asked. “How is this happening?”

“Who is pocketing this money. This is the question. This is a massive fraud that is taking place.”

Following protests by Tourism Minister Harin Fernando who reportedly threatened to resign at cabinet, a 50 dollar single entry visa was proposed.

20-pct revenue loss?

VFS Global was expected to get 10 dollars from the new 50 dollar visa, opposition legislator S M Marikkar charged, leading to a 20 percent loss in revenue to the country per visa.

“The government has thrown sand on the face of the people (mooneter weli gahala), trying to convince everyone that things are back to normal now that a 50 dollar visa is now available,” Marikkar charged in pithy Sinhalese.

“Doesn’t’ 10 dollars from that go to the company?

There was no answer from government benches.

“We will continue fight against this robbery,” Marikkar said. “We will expose more details relating to this robbery.”

VFS Global in a statement issued before the controvery over the possible 10 dollar payment said there was no ‘cost’ to the government.

“The solution is offered through a user-pay model, at no cost to the government. All investments related to technology, infrastructure and staff are borne by the company,” VGS Global said in a statement.

“The total service fee approved by the Cabinet is US$ 18.50 across all visa categories. Payment processing charges and applicable local taxes are in addition to the service fee.”

The VFS Global deal hit the Indian Ocean island just as tourism was recovering from the worst economic crisis in recent history leaving a large section of the population mal-nourished and the country is struggling to restructure foreign debt with the help of the IMF.

National Security Minister Tiran Alles, under whose ministry the Department of Immigration comes has said there was no need to call competitive tenders because no one would compete against VFS Global.

“Just think about this, because I say it,” Minister Alles told reporters in Colombo. “If we called tenders who is there to tender for this and compete against VFS?

“We went to cabinet. Committees were appointed. It was studied. Against went to cabinet. That was the correct process that was done.”

Opposition legislators meanwhile said VFS Global was charging 21.65 dollars from tourists from several countries where the cabinet of ministers have decided to give free visas to promote tourism

“Visa cost is zero. Then here is a service free of 18.50 for a free visa,” Opposition legislator Nalin Bandara told parliament.

“There is another charge for 3.11 dollars. So they are taking 21.65 dollars for a gratis visa when a tourist comes to Sri Lanka.” (Colombo/May15/2024)

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Weather and Climate

Water levels rising in Sri Lanka Kalu, Nilwala river basins: Irrigation Department

Sri Lanka Navy assisting in rescue operations (Pic courtesy SL Navy)

Monday June 3, 2024 2:17 pm

ECONOMYNEXT – Sri Lanka’s Irrigation Department has issued warnings that water levels in the Kalu and Nilwala river basins are rising and major flooding is possible due to the continuous rain. People living in close proximity are advised to take precautions.

“There is a high possibility of slowly increasing prevailing flood lowline areas of Kiriella, Millaniya, Ingiriya, Horana, Dodangoda, Bulathsinhala, Palinda Nuwara and Madurawala D/S divisions of Ratnapura and Kalutara Districts, up to next 48 hours,” it said issuing a warning.

“In addition, flood situation prevailing at upstream lowline areas of Ratnapura district will further be prevailing with a slight decrease.

“The residents and vehicle drivers running through those area are requested to pay high attention in this regard.

“Disaster Management Authorities are requested to take adequate precautions in this regard.”

The island is in the midst of south western monsoon.

DMC reported that 11,864 people belonging to 3,727 families have been affected due to the weather in Rathnapura, Kegalle, Kilinochchi, Jaffna, Mullaitivu, Kalutara, Gampaha, Colombo, Galle, Matara, Hambantota, Puttalam, Kurunegala, Kandy, Nuwara Eliya, Anuradhapura, Polonnaruwa, Badulla, Moneragala, and Trincomalee districts.

Meanwhile, the Meteorology Department stated that showers are expected on most parts of the island today.(Colombo/June3/2024)

Politics

UNP gen secy defends call for postponing Sri Lanka poll, claims opposition silent

The UNP party headquarters in Pitakotte/EconomyNext

Monday June 3, 2024 1:59 pm

ECONOMYNEXT — United National Party (UNP) General Secretary Palitha Range Bandara has defended his call for postponing Sri Lanka’s presidential election by two years, claiming that his proposal was not undemocratic nor unconstitutional.

Speaking to reporters at the UNP headquarters Monday June 03 morning, Bandara also claimed that neither opposition leader Sajith Premadasa nor National People’s Power (NPP) leader Anura Kumara Dissanayake have spoken against his proposal.

“I have made no statement that’s undemocratic. My statement was in line with provisions of the constitution,” the former UNP parliamentarian said.

He quoted Section 86 of Chapter XIII of the constitution which says: “The President may, subject to the provisions of Article 85, submit to the People by Referendum any matter which in the opinion of the President is of national importance.”

Sections 87.1, 87.2 also elaborates on the matter and describes the parliament’s role, said Bandara.

“I spoke of a referendum and parliament’s duty. Neither of this is antidemocratic or unconstitutional. As per the constitution, priority should be given to ensuring people’s right to life,” he said.

“Some parties may be against what I proposed. They may criticse me. But what I ask them is to come to one position as political parties and make a statement on whether they’re ready to continue the ongoing economic programme,” he added.

Bandara claimed that, though thee has been much criticism of his proposal for a postponement of the presidential election, President Wickremesinghe’s rivals Premadasa and Dissanayake have yet to remark on the matter.

“I suggested that [Premadasa] make this proposal in parliament and for [Dissanayake] to second it. But I don’t see that either Premadasa nor Dissanayake is opposed to it. To date, I have not seen nor heard either of them utter a word against this. I believe they have no objection to my proposal which was made for the betterment of the country,” he said. (Colombo/Jun03/2024)

Accidents

300 of 100,000 trees in Colombo considered high risk: state minister

Monday June 3, 2024 1:05 pm

ECONOMYNEXT – Trees in Sri Lanka’s capital Colombo are being monitored by the municipal council, Army and Civil Defense Force as the severe weather conditions continue, State Minister for Defense Premitha Bandara Tennakoon said.

“Within the Colombo Municipal Council city limits, there are 100,000 trees. Of these, around 300 are considered high risk,” Tennakoon told reporters at a media conference to raise awareness about the current disaster management situation.

Not all trees required to be cut down he said. “We can trim some of the branches and retain them.”

The problem was that buildings in the vicinity of the tree had cut branches on one side, causing it to become unbalanced, the minister said.

New laws would be brought in so provincial/municipal institutions could strengthen enforcement of building codes.

“We don’t have a single institution that can issue a warning about a tree. Not one to tell us what trees can or cannot be planted near a road.

“Trees should be suitable for the area. Some trees have roots that spread and damage roads, buildings. When the roots can’t go deep, they tend to topple over.

“Now Environment Day is coming up, and anyone can go plant a tree by the road. We have to take a decision about this. We have to enforce laws strongly in future.” (Colombo/June3/2024)